Federal Tax Negotiations
What Are Federal Tax Negotiations?
There are different types of IRS tax relief for people who owe back taxes. Federal tax negotiations, or tax debt settlement, is sometimes used to satisfy a tax debt for less than the total amount owed. The formal name for this type of tax relief is an Offer in Compromise.
What Is An Offer In Compromise?
According to the IRS website an offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
- Ability to pay;
- Income;
- Expenses; and
- Asset equity.
We generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
How Can I Negotiate My IRS Debt?
Anyone can negotiate their IRS debt and win! You will need an experienced negotiator on your side. Our firm has successfully negotiated clients tax debt and greatly reduced what the IRS said they owe. When the IRS is owed money, they use every available avenue to collect those funds. This includes garnishing wages and putting a lien on property. Owing past due taxes can also result in derogatory entries on your credit report, which can have a negative impact on your credit score. Before you take a hit on your credit score or lose your personal property, negotiations can be done with the IRS or other tax authorities. While you can attempt these negotiations on your own, the services of a skilled professional may result in a more favorable outcome.
How Can Federal Tax Negotiations Services Help Me?
You may not be able to pay the lump sum due for the past due taxes, a payment plan or reduction in the amount that is due can go a long way in making the debt manageable. Negotiating with the IRS or state tax authorities on your own can be very stressful, especially since you are not sure what the outcome will be. Federal tax negotiations professionals can effectively work on your behalf to arrange a satisfactory payment plan or reduction in the outstanding debt.